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Crypto Trading Ideas
Bitcoin Bottom Is Near as Miners Capitulating Near FTX Implosion Level: CryptoQuant
Miner capitulation levels are now comparable with those in end of 2022, which was the market bottom after FTX implosion, CryptoQuant said.
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- Bitcoin miner capitulation metrics are approaching the same level as the market bottom following the FTX crash in late 2022.
- Daily miner revenue has dropped to $29 million from $79 million following the bitcoin halving earlier this year.
- The hashrate has slumped by 7.7% since the halving as inefficient miners turn off their equipment.
Bitcoin (BTC) miners are showing signs of capitulation, an event that is typically tied to a market bottom after the world's largest cryptocurrency endured a 13% plight over the past 30 days.
Bitcoin is currently trading at $60,300 after sliding by 3% on Wednesday. This level has acted as a critical support since April, with bitcoin bouncing three times from this region before heading back towards the $70,000 mark.
Data provider CryptoQuant believes this is likely to happen again in the near future as numerous signs point towards capitulation following a period of intense sell pressure.
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Two signs of miner capitulation are dwindling hashrate and mining revenue by hash (hashprice), both of which are down significantly this month, with hash rate plunging by 7.7% since the halving at hashprice nearing all-time lows. Hashrate is the mining power in the Bitcoin network, and hash price refers to the revenue miners earn from a unit of hashrate.
Miners are also experiencing a hit to their daily revenue, which fell to $29 million today from $79 million on March 6. This has led to miners turning off equipment and the subsequent drop in hashrate.
"Miners have been hit by a 63% decline in daily revenues due to the halving and the collapse of transaction fees to 3.2% of total revenue," CryptoQuant said in a report.
Miner capitulation levels are now comparable with those in December 2022, which was the market bottom following the demise of FTX.
https://www.coindesk.com/business/2024/07/03/bitcoin-bottom-is-near-as-miners-capitulating-near-ftx-implosion-level-cryptoquant/
